Core Insights - Jabil Inc. (JBL) and Arista Networks, Inc. (ANET) are prominent players in the technology manufacturing sector, with Jabil focusing on electronics manufacturing services and Arista specializing in data center and campus Ethernet switches and routers [1][2][3] Jabil Inc. (JBL) - Jabil operates in 100 locations across 30 countries, benefiting from strong margins and cash flow dynamics, along with extensive end-market experience and technical capabilities [4] - The company is enhancing its internal processes through improved working capital management and the integration of AI and ML technologies, which is expected to drive growth in AI data center infrastructure and automation markets [5] - Jabil anticipates a 5.1% increase in sales and a 13.3% rise in EPS for 2025, supported by demand in AI and automation [9][11] - The company faces competition from various electronic manufacturers and service providers, and geopolitical tensions, along with low demand in some consumer markets, are impacting its margins [6] Arista Networks, Inc. (ANET) - Arista is a leader in 100-gigabit Ethernet switches and is expanding its market presence in 200- and 400-gigabit products, with its Arista 2.0 strategy focusing on modern networking platforms [7][8] - The company projects a 25.4% increase in sales and a 23.8% rise in EPS for 2025, driven by momentum in AI networking [9][13] - Despite increased demand, Arista is experiencing high operating costs, with total operating expenses rising 13.8% to $452.4 million in Q2 2025, affecting its margins [10] - The company is also facing supply bottlenecks for advanced products, which is impacting its working capital [10] Comparative Analysis - Jabil's stock trades at a forward P/E ratio of 17.7, while Arista's is significantly higher at 47.2, indicating that Jabil may be more attractive from a valuation perspective [9][16] - Over the past year, Jabil's stock has increased by 60.8%, compared to Arista's 50.3% growth, suggesting better price performance for Jabil [14] - Both companies are ranked 3 (Hold) by Zacks, but Arista's concentrated exposure to data-center and AI networking gives it a slight edge as a potential investment option [17][18]